The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-09-23
The Financial Situation.

The determination of the Secretary of the
Treasury to buy per cent. bonds, as well
| as Az Der cents, will doubtless help some
what to relieve the stringency of the money
market. The impression among New York
bankers is that if the government would
purchase So, 100000 or S30,0O0,0O0 Of its
securities at once, the existing stringency
would be so far relieved that there would
be no further fear of trouble. 1t is probable
that the Secretary of the Treasury will be
able TO get that amount of bonds within the
next week or two at a price which, in his
judgment, the government ought to pay.
Some of the New York bankers think that
he ought not to hesitate about the price,
provided it is not unreasonable, but it is
probable that he has too level head to
permit himself to be influenced by extreme
counsels.
There is no serious apprehension Of a
panic in New York. One old banker, in an
interview in the World, remarked that
panics come suddenly. They don't come
when they are talked about for a long
while The Tribune. in discussing the
financial situation, says that 1.-The supply of
money in the country is abundant for all
legitimate needs; it is not large enough to
enable bold operators to buy up the world
and all its crops, or to build in year all
the houses, stores, railroads, factories and
other structures that VIZ be wanted for five
years hence" There is doubtless a great
deal of truth in this statement and, as a
matter of fact, the present stringency is
,rtl,, a. H. Al
is necessary for the needs of the country.
An extraordinary amount Of money has
gone into new enterprises within the last
year, and it is scattered through the country
instead of being at hand to be employed in
moving the crops
One of the ablest of the New York bank
ers said to a prominent Savannah bank
President last October, that there was
bound to be an extremely tight money
market within year. He said that rail
road building and real estate speculation
were very active, and that to carry on the
new enterprises and to meet the demands of
the speculation required more additional
currency than was being furnished by the
increase in the number of the national
Treasury, he said, was gradually diminish
ing the amount in circulation. These two
things, he pointed out, were bound to cause
a stringency, and he was right.
The stock spectators in New York are
more disturbed by the tight money market
than the merchants, although the latter are
suffering some inconvenience The reason
is that speculation is far from active. An
active stock market requires plenty of
money. 1t is said that Wall street has on
band at present millions of dollars of new
securities of one kind and another which it
is waiting for favorable opportunity to
float This condition of affairs makes
grumblers and plenty of talk, but it doesn't
make panic by any means
The South ought TO be getting into good
shape now. Cotton is being marketed rap
idly and it commands the cash There is
plenty of money to pay for it. Millions of
dollars are being scattered through the cot
ton belt every week. This money will soon
find its way in the hands of the local mer-
chants and finally 1t will reach the banks
again.
Money is not alarmingly tight now. 1t is
probable that it will be tighter before the
market gets relief, but there is no present
reason to apprehend great financial trouble